Airline Industry.pptx - Airline Industry Priya Desai(75...

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Airline Industry Priya Desai (75) Pradnya Devade (77) Adwaita Joshi (79) Pranshu Katyal (85) Sanskruti Meher (94) Bijaya Pradhan (107) Saishraddha Uchil (117)
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Introduction Civil aviation industry is on a high-growth trajectory. Third-largest aviation market by 2020 & largest by 2030. Total passenger traffic was 223.6 million in FY16, while in FY15 it was 190.1, growth of 17.62% . Passenger traffic CAGR was 11.8% for FY06-16. CAGR of Air Cargo is 7% (2 nd Fastest Growing Market)
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Market Size & Share Indian domestic air traffic to cross 100 million passengers by FY2017, compared to 81 million passengers in 2015, ( as per Centre for Asia Pacific Aviation (CAPA). India is among the five fastest-growing aviation markets globally with 275 million new passengers. The airlines operating in India are projected to record a collective operating profit of Rs 8,100 crore (US$ 1.29 billion) in fiscal year 2016, according to Crisil Ltd. 38% 18% 15% 13% 8% 2% 2% 4% Market Share March Indigo Jet Airways Air India Spice Jet Go Air Air Asia Vistara Others 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 85.10% 79.10% 75.70% 86.30% 91.10% 82.70% Passenger Load Factor Passenger Load Factor
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Porters Five Force Model Threat of New Entrants - Medium Bargaining power of Buyers– High Bargaining power of Suppliers- High Threat of Substitution – High to Medium Competitive Rivalry – High to Medium
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Threat of New Entrants Medium Aviation industry is very saturated, hardly any space for newcomer to squeeze in. Government Regulations is very Strict and Stringent. Cost of entry is very high. One of the most expensive industries:- Cost of buying/leasing aircrafts Safety and security measures Customer service and manpower Difficult to compete with established brands in the industry.
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